JD.com’s logistics arm raises a $218 million investment fund

The logistics division of JD.com, Alibaba’s closest e-commerce competitor in China, has raised 1.5 billion yuan (about $218 million) to invest in logistics-related companies and technology. Limited partners in the new fund include JD Logistics and JD.com, as well as undisclosed listed companies and government-led funds, reported Reuters.

But two months ago, JD.com CEO Richard Liu said in an internal memo that JD Logistics would enact several cost-cutting measures after losing 2.8 billion yuan (about $420 million) last year. These include getting rid of a basic salary for its couriers and instead pay them based on how many packages they deliver. JD.com owns a 81.4 percent stake in the business.